Shares in the UAE surged on Tuesday, thanks to rising oil prices and a bright start to the year by Asian equities.
Brent crude futures rose by more than 2 per cent to an 18-month high of US$58.16 a barrel on Tuesday afternoon, after Kuwait and Oman confirmed they had reduced output in line with an agreement signed by Opec and non-Opec countries in November.
Bourses in Asia, meanwhile, enjoyed a bright start to January on the resumption of trading following New Year’s holidays. The Shanghai Shenzhen CSI 300 rose by a per cent, with Hong Kong’s Hang Seng up by 0.7 per cent.
The key share index in Dubai closed up 1.8 per cent at a three-week high of 3,602.32, led by Emaar Properties.
The developer’s shares rose for a second consecutive day, closing up 2.9 per cent at Dh7.39.
Dubai Investments and Damac Properties were among the other big name gainers, rising 2.5 per cent and 3.1 per cent, respectively.
Insurance stocks continued to soar following the introduction of higher tariffs by the UAE’s Insurance Authority from the start of the year. Dubai Islamic Insurance and Reinsurance shares rose by 15 per cent, while Salama Insurance rose by 11.2 per cent.
Banking stocks led gains in Abu Dhabi, where the share index rose 1.2 per cent to a five-month high of 4,590.31.
FGB and ADCB rose by 1.6 per cent and 4.4 per cent, respectively.
Shares in Saudi Arabia were more subdued, on speculation that local oil prices may rise further. The Tadawul closed 0.05 per cent per cent higher at 7,250.76, with losses by Samba and NCB offsetting gains by Sabic and Saudi Electricity.
jeverington@thenational.ae
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